NEW YORK, Aug. 24, 2019 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Netflix, Inc. ("Netflix" or the "Company") (NASDAQ: NFLX) and certain of its officers. The class action, filed in United States District Court, for the Northern District of California, and indexed under 19-cv-04395, is on behalf of a class consisting of all persons and entities who purchased or otherwise acquired the publicly traded securities of Netflix between April 17, 2019 and July 17, 2019, both dates inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Netflix securities during the class period, you have until, September 20, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Netflix provides Internet entertainment services, primarily streaming services.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Netflix would not be able to gain its expected target number of new subscribers in the second quarter of 2019; (ii) Netflix would also lose subscribers from the United States in the second quarter of 2019; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.
On July 17, 2019, post-market, Netflix released a letter to shareholders which revealed that Netflix missed its expected target for number of new subscribers and lost 126,000 subscribers in the United States during the second quarter of 2019. Also on July 17, 2019, Netflix held an earnings call to discuss its financial and operating results for the quarter. During the earnings call, the Company's Chief Financial Officer attributed the missed subscription target to the "timing of [Netflix's] content slate" and price increases.
On this news, Netflix's stock price fell $47.34 per share, or over 13%, over the following two trading sessions, closing at $315.10 per share on July 19, 2019
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP